Falling Crude Oil inventories Support Prices

Crude oil contracts found support during Asian trade hours, Wednesday morning. They were buoyed by

A fall in U.S. crude inventories as well as ongoing risk of supply disruptions in the Middle East and Venezuela.

As of 1:20 am GMT, Brent crude oil futures, the international benchmark, were trading at $71.90 per barrel. This was up 32 cents, or 0.5 percent, from yesterday’s close.

U.S. West Texas Intermediate (WTI) crude futures gained nearly 33 cents, or 0.5 percent. They were trading at $66.85 a barrel.

Crude Oil Traders React to Global Supply Headlines from the U.S. and Middle East

Looking at headlines affecting the black gold, news out of the United States, showed that crude inventories fell by a million barrels last week, to 428 million barrels. This is according to a weekly report by the American Petroleum Institute (API).This data was released during North American trade hours on Tuesday.

Official weekly U.S. data will be released by the Energy Information Administration (EIA). This data is scheduled to be released on Wednesday.

Outside the United States, markets have gotten general support because traders feel that there are high risks of supply disruptions. This includes potentially spreading conflict in the Middle East. Also, there are possible renewed U.S. sanctions against Iran. Elsewhere. There is falling production as a result of political and economic problems in the South American country of Venezuela.

There are also supply restrictions at propping up prices led by the cartel of the Organization of the Petroleum Exporting Countries (OPEC). This has been in place since 2017. Coupled with falling output in Venezuela and the Middle East worries of conflict was supporting prices.